Anneliese Dodds is the Labour MP for Oxford East.
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The shadow Minister asked about regional co-operation. A particularly important area is encouraging intra-regional trade and encouraging, for example, the integration of energy systems, which is becoming increasingly important in the light of the climate crisis. These are areas that have been examined.
The shadow Minister asked about the Caribbean. The fund will, absolutely, be focused on the Caribbean, which is really important. That is particularly the case when it comes to adaptation-focused investment. IDB Invest will be making 10% of its investments in the Caribbean, and 60% of its focus will be on pro-environmental and climate measures, including adaptation, which are particularly important for those countries and overseas territories that are being hammered by the impacts of the climate crisis right now.
Full debate: Draft Asian Development Bank (Thirteenth Replenishment of the Asian Development Fund) Order 2024 Dra...
With a future pandemic a certainty, climate change a fundamental threat to public health, and the rise of antimicrobial resistance-related deaths, the link between national health security and global health security has never been clearer. From surveillance and tackling pandemics to strengthening country health systems ready to address the challenges of tomorrow, the WHO plays a vital global leadership role.
This investment, alongside other international partners’ support, will enable the WHO to prioritise activities that directly contribute to better health outcomes worldwide. Outcomes supported include: an enhanced global health emergency response—better protecting 7 billion people from health emergencies by 2028; ensuring universal health coverage—supporting 5 billion people to access quality health services without suffering financial hardship; combating antimicrobial resistance—accelerating actions to counter the growing threat of AMR; and strengthening climate resilience—supporting adaptation plans to better prepare nations for the impacts of climate change.
Full debate: World Health Organisation Investment Round
This Government are getting on with reconnecting Britain to the world and modernising our approach to international development in a spirit of genuine partnership and respect, as I set out in a speech at Chatham House a couple of weeks ago. That speech built on the Foreign Secretary’s lecture at Kew Gardens, in which he reiterated our view that action on the climate and nature crisis must be at the heart of everything that we do. I am grateful to the hon. Member for North Herefordshire for making reference to that; it is a genuine and important commitment. We believe that action on the climate crisis is critical to grow our economy and bring opportunities to people across our country and globally, and we know that our partners around the world share that ambition. When I was in Indonesia, for example, I was pleased to sign an agreement on critical minerals with the Government there, working on the climate crisis and green growth with them. We have a strong shared agenda, and we need to solidify that partnership globally.
I congratulate the hon. Member for North Herefordshire (Ellie Chowns) on securing this important debate. We have already heard that the UN has identified a need for £600 billion of additional private finance if we are to tackle climate change. Does my right hon. Friend the Minister agree that in the UK, due to the expertise of the City, we are uniquely placed to lead on that? Does she also agree that the UK delegation to COP in Baku must make an ambitious new goal for private investment in the climate a major priority?
We are clear that situations of extreme humanitarian need globally are so often driven by conflict and climate crisis—in fact, they are often driven by the two intertwined. I unfortunately saw that for myself in South Sudan, at the Bentiu camp for internally displaced people. People escaping the horrific civil war in Sudan are managing to make it to the IDP camp, but they are surrounded by floodwater. It is now a permanently flooded area, making an already horrendous situation worse. We need to recognise the fundamental impact that the climate crisis is having right now, as the hon. Member for North Herefordshire rightly underlined.
I am very pleased to be heading to Baku for the climate COP alongside the Prime Minister and the Foreign Secretary, who attended previously when in opposition. As well as coming forward with our own ambitious, nationally determined contribution for the UK at COP29, we are determined to support others to scale up their ambition and action. That includes initiatives such as the global clean power alliance, which the hon. Member for North Herefordshire may have heard mention of. That is a strong commitment from the new UK Government. We are determined to deliver greater political momentum.
When speaking with our friends based on small islands and in fragile and vulnerable states, such as many of those the UK Government met with at the Commonwealth Heads of Government meeting in Samoa, we hear very loudly and clearly how difficult it is for them to access the finance that they need, especially climate finance. Very little of it is getting to those who need it, particularly fragile and conflict-affected states. The UK is determined to work with our partners to change that. I have prioritised, including at the World Bank annuals last week, trying to push hard for sources of climate finance and adaptation finance to be available. I am grateful to the hon. Member for Strangford (Jim Shannon) for mentioning the role of farmers. The proportion of climate finance that reaches farmers in the most fragile and conflict-affected states is minuscule, particularly for adaptation. That must change urgently.
I agree with the hon. Member for North Herefordshire that we must increase the level of dedicated climate finance from all sources across the causes and impacts of the climate crisis. We are determined to agree an ambitious new collective quantified goal; that is absolutely pivotal to our negotiations and vital to maintaining the global consensus of the Paris agreement and keeping 1.5° of warming within our reach. The UK is working extremely hard on this. The Department I am based in and the Department for Energy Security and Net Zero are working closely together and with our new climate and nature representatives. We have been carrying that forward at every opportunity.
Of course, that collective quantified goal needs to be agreed. From the UK’s point of view, we are determined to exercise leadership. I am delighted that the Secretary of State for Energy Security and Net Zero, who was engaged in this 16 years ago and managed to achieve great things then, is working with my Department, our representatives and so many contacts from all across the world to say, “How can we put forward the overall figure that is needed?” It has to be jointly agreed, as the hon. Member knows. The most important thing is that we get a figure out at the end because if those negotiations do not succeed, we will be taking a step backwards when we are in a situation of such urgent need.
As the hon. Member rightly mentioned previously, the UK has traditionally been a funder in this area, focusing particularly on the quality of climate finance and ensuring that there is sufficient grant and concessional finance. That is something we are determined to continue to do.
For our part, as well as co-chairing the global green climate fund, we are working towards making good on the UK’s pledge to get help to those who need it. We want robust roles to be agreed for article 6 on how countries co-operate to reduce emissions. We need real follow-through from the global stocktake on commitments such as tripling renewable power and doubling energy efficiency globally by 2030, and we need implementation of the national adaptation plans as we scale up finance in support. We have committed £100 million to the taskforce on access to climate finance that the UK co-chairs with Rwanda, and we are working with the World Bank and the board of the new fund for those facing devastating loss and damage; the hon. Member was right to mention that as being important.
I refer back to the figure that the hon. Member for Chesterfield (Mr Perkins) mentioned—the UN’s finding that we need £600 billion of international climate finance per year to address the challenge that we face. That is actually the same amount that is invested in oil and gas every year. Does the Minister agree that we must put a complete end to all public subsidy or support for fossil fuel industries right now? Can she comment on the role that the UK could and should play in ending all such subsidies?
I am grateful to the hon. Lady for making that point. She may have heard the Chancellor state today that this new Government will ensure that what was described as a windfall tax on oil and gas companies, but did not operate as one because of the numerous loopholes, will be tightened up. We will ensure that support for decarbonisation is incentivised, rather than disincentivised, as it was under the previous approach to taxation, so big changes are taking place.
Full debate: COP29 and International Climate Finance
When UNCLOS was drafted, significant sea level rise and changes in coastlines as a result of the climate crisis were not contemplated by the drafters, and no provision was made for this. However, with sea level rise, coastlines are likely to regress, and some features may be completely inundated and lost.
The International Law Commission is the UN body of international law experts responsible for studying and making recommendations to encourage the progressive development and codification of international law. ILC work on the topic of sea level rise in international law has been ongoing since 2019, and the UK has responded to ILC requests for information on state practice. On 6 August 2021, the Pacific Islands Forum made a declaration to the effect that having, in accordance with UNCLOS, established and notified their maritime zones to the UN Secretary-General, Pacific Islands Forum members intend to maintain these zones without reduction, notwithstanding climate change-related sea level rise, and will not review or update the baselines or outer limits of their maritime zones as a consequence of climate change-related sea level rise. The Alliance of Small Island States made a similar statement in their leaders’ declaration in September 2021.
Having considered the work of the ILC to date on the issue of maritime boundaries, and the views of our partners, I can confirm that the UK Government take the view that UNCLOS imposes no express or affirmative obligation on states to keep their baselines or the outer limits of maritime zones derived from them under review, or to update them once they have been established in accordance with UNCLOS. UNCLOS provides that baselines and outer limits of the maritime zones are as shown on the relevant chart or specified by co-ordinates. It does not expressly require coastal states to update those charts or co-ordinates. This position is consistent with the object and purpose of UNCLOS as a regime for securing a stable division of maritime space. Once a state has established its maritime zones in accordance with UNCLOS, it is permitted to maintain those maritime zones, and the rights and entitlements that flow from them, notwithstanding changes to coastlines and physical features that result from sea level rise caused by the climate crisis. This does not prejudice the UK Government’s position on other international law questions raised by sea level rise that the ILC is also considering.
Full debate: Sea Level Rise: Maritime Zones
The Foreign Secretary unveiled a plan of action to boost investment opportunities across all members, especially smaller and more vulnerable states that are bearing the brunt of the impacts of the climate crisis. In support of the plan, the Foreign Secretary committed seed funding for a new Commonwealth investment network to identify opportunities across the Commonwealth that public-private partnerships could unlock. In Samoa, he launched two new trade hubs to help female entrepreneurs access global markets, following my announcement at the World Bank. He announced measures to support Commonwealth partners to create a better environment for growth by supporting democratic governance, human rights and the rule of law. That is really important, because without targeted support, we run the risk of some within the Commonwealth missing out on economic development, at a time when we need everyone to be part of global growth.
The Prime Minster and the Foreign Secretary raised the ambition to protect the ocean and sea species. We have increased technical assistance to small states to help them unlock access to climate finance, and we were proud to agree the first Commonwealth ocean declaration. Of the 56 Commonwealth members, 49 have a coastline, and our members are home to around half all global coral reefs. We were delighted that the whole Commonwealth came together to back global efforts to protect at least 30% of the planet’s ocean by 2030, urged rapid ratification of the agreement on marine biodiversity in areas beyond national jurisdiction, and called for an ambitious global plastic pollution treaty that addresses the full life cycle of plastics—all that as the Foreign Secretary supported a beach clean-up with young Samoans, as part of a relay right across the Commonwealth that will pick up a million pieces of plastic by the 2026 Commonwealth games in Glasgow.
Full debate: International Engagement
My hon. Friend raises an incredibly important point. It is critical that the UK can speak with credibility on these issues—and now, under the new UK Government, we can, given the creation of GB Energy and the other measures that we have taken. We are ensuring that climate leadership is always to the fore, including in the conferences of the parties. Of course, the COP nature summit in Colombia is fast approaching.
Full debate: Oral Answers to Questions
I have today laid a departmental minute describing a new liability, the innovative finance facility for climate in Asia and the Pacific (IFCAP), which the Foreign, Commonwealth and Development Office (FCDO) is undertaking to unlock additional climate finance in Asia and the Pacific. The liability is a guarantee of $280 million (£210 million) to the Asian Development Bank’s (ADB) IFCAP guarantee facility. The guarantee will have no up-front cost to the UK. The length of this liability is 25 years. A copy of the departmental minute to Parliament has been placed in the Library of the House.
There is huge demand for finance, especially for climate transitions, in Asia. The ADB has pledged to become the “climate bank of Asia” and, in line with UK asks, has announced an ambition to commit $100 billion at COP26 to climate finance projects between 2019 and 2030. This will require a doubling of its climate finance commitments in the second half of this decade compared to 2019 to 2023.
IFCAP is a mechanism developed by the ADB that will support this ambition. Through IFCAP, the UK and other development partners will provide guarantees to the ADB. Together, this will unlock up to $11 billion of new affordable climate finance from the ADB to middle-income countries in Asia and the Pacific—of which $1.2 billion is directly as a result of the proposed UK guarantee. The additional climate finance unlocked by IFCAP will help to mitigate carbon emissions in some of the highest polluting countries globally, and to support resilience to natural disasters in the most climate-vulnerable populations.
The UK guarantee would pay out through the ODA budget, up to a limit, the value of any missed repayment within six months if there were to be a default to the ADB by a country in the portfolio of loans guaranteed under IFCAP. The maximum total payout would be $280 million (£210 million), and the annual estimated payout for IFCAP is £6 million per year over the 25-year lifetime of the guarantee. The guarantee provides powerful credit relief to the ADB, allowing them to increase climate finance by up to $4.50 for every $1 guaranteed through IFCAP.
Full debate: Innovative Finance Facility for Climate in Asia and the Pacific
In these often dangerous and divided times, the UK’s security is our first priority, as my right hon. Friend the Defence Secretary made clear. We will stand up for our interests and for our values. We will create a new relationship with the EU, we will deepen our engagement with the global south, we will reclaim leadership on tackling the climate crisis, and we will champion human rights and international law. We will work in partnership with our friends and allies to reduce global poverty and the drivers of conflict and instability, and we will also empower women and girls. In that connection, I congratulate my new hon. Friend the Member for Doncaster East and the Isle of Axholme (Lee Pitcher) on his heartwarming maiden speech, and particularly his reference to the women in his life. Indeed, many new Members have made reference to their partners and families in their maiden speeches.
As the Minister for Development and for Women and Equalities, I know that delivering a truly effective and modern approach to development has never been so urgent or so important. On that, I concur with the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell). Partnership, not paternalism, is required to deliver the change that is so desperately needed. Next week, I will go to the G20 development ministerial meeting in Brazil to reconnect with allies and partner countries in the global south. Together, we must reform the international financial system to tackle unsustainable debt, accelerate growth and unlock climate finance. Together, we must enhance our ability to prevent conflict, and together we must restore our development reputation to deliver both for our international partners and for the British people—and it does need restoring.
Full debate: Foreign Affairs and Defence
Yesterday, a colliery in south Wales was given permission to mine a further 40 million tonnes of coal. The Government appear to have abdicated responsibility for the decision, although in reply to my written questions I have learned of discussions and correspondence between the Secretary of State and the Welsh Government about the licence. A promised copy of that correspondence has still not found its way into the Library nine days after it was promised. Real climate leaders do not issue new fossil fuel licences, nor do they pass the buck if someone else is trying to do that on their watch. Will the Leader of the House use his best offices to ensure a copy of that correspondence is put into the Library as soon as possible, and can we have a debate in Government time on the importance of leaving new fossil fuels in the ground, as the science demands?
Of course, the Government will follow the normal requirements of business, and if a document has been referred to at the Dispatch Box by a Minister it will be put in the Library in due course—that is routine—but I do not know the status of the document she refers to. Net zero is by 2050. We are not at 2050 yet. We are going to need to have fossil fuels for the interim period and we are going to need coal for things like heritage railways and so on. Therefore, it is perfectly reasonable that we take some coal out of the ground. I cannot see why it is better to import it from abroad, rather than to get it from our own green and pleasant land.
Doncaster Sheffield airport has played a huge part in Doncaster’s history—I am sure my right hon. Friend will know it was once home to our nuclear deterrent, in the form of the Vulcan bomber—but, although it has a distinguished past, I am more interested in its future. The airport is currently working with both the University of Sheffield Advanced Manufacturing Research Centre and a company that produces the Airlander. Both will help hugely towards our net zero goal and employ and train many local people. With support through the Department for Business, Energy and Industrial Strategy, they would truly start the levelling-up agenda. Will my right hon. Friend therefore speak with Government Ministers to help to secure that funding, so that Doncaster’s future is as exciting as its past?
My hon. Friend is a brilliant champion for his constituency, as he shows once again. He is right to take pride in the history of a place, but to look forward to how that will become a future of prosperity and growth. I can tell him that BEIS has committed to co-funding a new zero carbon UK aircraft technology through the Aerospace Technology Institute programme to 2031, which will help to reach net zero aviation emissions by 2050. That is a commitment from both industry and the Government and builds on the commitment to provide joint funding of £3.9 billion for aerospace research and development between 2013 and 2026. The same programme has supported 343 aerospace technology projects, with total Government and industry funding of £3.2 billion across the UK, including the emerging green aerospace cluster in south Yorkshire. Officials will consider any business case presented for support, so I will ensure his comments and his request are passed on to the Secretary of State.
In Swansea, 62% of waste is recycled compared with about 30% in north London. In Wales, we have a moratorium on incineration, but the Government’s plan in England is to double incineration by 2030. Indeed, the latest incinerator in north London will generate 700,000 tonnes of carbon dioxide. Can we have an urgent debate on incineration and fiscal measures to reduce it so that we can have cleaner air locally, protected from the ultra-fine particulates that incinerators emit, and contain our climate change discharges in a sensible way?
Full debate: Business of the House
Moreover, where will the new jobs come from? With the hosting of COP26 this year and the eyes of the world upon us, the UK has an enormous opportunity to show how an active Government making smart investments can help us emerge from the economic crisis and meet our net zero ambitions at the same time. Labour has called for £30 billion of investment to be accelerated into the next 18 months to support the creation of 400,000 new green jobs, but, unbelievably, yesterday’s Budget took us backwards. The Government have actually cut half a billion pounds of capital investment from their plans for the coming year, and the green homes grant, the flagship programme of the Chancellor’s summer statement last year, seems to have disappeared from the face of the earth, after more than 75% of its funding was cut and it was found to have been costing jobs.
Full debate: Income Tax (Charge)
We need action, not rhetoric, to support the creation of new jobs. There is a tremendous opportunity here to align job creation with our net zero ambitions. Labour has called for the acceleration of £30 billion of green investment in the next 18 months. We have demonstrated how that could support the creation of 400,000 new green jobs. Incredibly, the Chancellor cut £300 million from the planned capital budget in November. His shambolic green homes grant has been so badly delivered that it is actually costing jobs. We urgently need a change of course, so that we can support business to build the new jobs of the future.
Full debate: Government's Management of the Economy
Green finance has a crucial role to play if we want to build back better and transition to a net zero economy by 2050. The UK has a critical role in the development of the sector internationally, not just as a global leader in finance but with this year’s presidency of COP26 and chairmanship of the G7. Will the Chancellor outline for the House what he is doing to develop the vital green finance sector?
My hon. Friend makes an excellent point: not only are we leading in the world in reaching our net zero targets but we are a global financial centre, and we have combined the two to lead the greening of the financial system, which is an opportunity for us. We are going to issue a sovereign green bond this year and will be the first major economy to make mandatory the climate-related financial disclosures recommended by the international taskforce, which will help to cement our global leadership. I look forward to hearing from my hon. Friend the other things that we can do in this vital year for our journey to net zero.
Full debate: Economic Update
To rebuild business, we called for a national investment bank. I welcome the announcement of a new UK infrastructure bank, given that valuable years have been lost since the Green Investment Bank was sold off. Now the Chancellor must boost its firepower, and he must deliver on his Department’s responsibility for the drive to net zero. We have known since the Stern report that the climate crisis is the biggest long-term threat to our economy, yet far too often, this spending review locks us into a path that will make the transition to net zero harder, not easier, locking our economy out of the green jobs of the future.
Next year, the eyes of the world will be on the UK as we assume the presidencies of the G7 and the UN Security Council and host the COP26 summit, yet now is the time that the Chancellor has turned his back on the world’s poorest by cutting international aid. It is in Britain’s national interest to lay the foundations for economic growth around the world—no wonder many British businesses have condemned his move.
Finally, the hon. Lady asked about green issues. I think she compared us with France and Germany and questioned this Government’s and the Prime Minister’s ambition. Let me say this about our plans. They are, I believe, among the most comprehensive and ambitious of any developed economy. She talked about France and Germany, but in this country we are phasing out certain vehicles in 2030; in France, it is 2040. In this country, we are phasing out coal in 2025; in Germany, it is 2038. She talked about the billions of pounds being spent by our friends, but it is important when we make these international comparisons that we understand the detail of what the other countries promise. The German numbers include the subsidies for renewables; ours do not. That happens separately outside our plan and is worth £44 billion, supporting renewable energy in this country through the tariff system, which is what Germany alluded to. The German numbers also include support for public transport, which ours of course do not, because that is something we do just in the ordinary course of business. I am proud of this Conservative Government’s record. We are the first major economy in the world to legislate for net zero, and our economy has decarbonised faster than any other in the last 20 years. This Conservative Government will deliver the Prime Minister’s plans to get us to net zero, and that is something that I hope the whole House can welcome and support.
The Chancellor speaks of a fiscal emergency, but said not a word today about the climate and nature emergencies. There is a real risk that any green steps will be fatally undermined by the reckless pursuit of business-as-usual, environmentally destructive spending, such as the £27 billion road-building programme. He has said that there can be no lasting prosperity for people if we do not protect the planet, so will he adopt a new economic rule—a net zero test—and assess all spending and fiscal measures against the UK’s climate and nature goals, so that the whole package is properly green?
The Government firmly believe in making sure that the recovery is green. I urge the hon. Lady to have a look at the national infrastructure strategy that we have published today, entitled, “Fairer, faster, greener”, which outlines the funding for all the green measures contained in the Prime Minister’s 10-point plan. I think it represents a comprehensive and ambitious path to deliver our net zero commitments.
The Chancellor has spoken well today of the scars that are felt by so many in society due to the triple whammy of covid, climate change and Brexit. Will he outline how he will manage to ring-fence money for mental health within the health spend? Mind, the charity, has said that phone calls have doubled, with many young people experiencing debilitating anxiety, depression and self-harm. Will he urgently look at mental health and ring-fence money for workforce changes, which are desperately needed, and for a decent revenue spend to bring mental health up into line with physical health?
I do not believe that we are behind France and Germany. We are phasing out internal combustion engine vehicles 10 years before France, and we are phasing out coal 13 years before Germany. Indeed, the Prime Minister’s 10-point plan will support up to a quarter of a million green jobs, building on the progress that we have made by being the country that has decarbonised the fastest out of all major economies.
I know from my conversations with the industry that one of the things it was very keen to see was an extension of our job support and furlough schemes, which is something we have been able to provide, and I know that will make a difference in preserving those valuable skill matches the hon. Member talked about. She will also know that there is an existing research and development park that the Department for Business runs, where it works with the aerospace industry to provide access. Some of the new R&D we have put aside for our net zero transition will also help because it is designed for reducing emissions and finding new ways in the transportation sector.
Full debate: Spending Review 2020 and OBR Forecast
Labour supports the move to greater disclosure of climate-related information. Two months ago, we called on the Government to show leadership and introduce mandatory reporting ahead of COP26. The Chancellor’s announcement and that of the Financial Conduct Authority this morning are positive, but they only relate to a “comply or explain” basis, with full implementation not set for many years—until 2025. The climate crisis demands bolder action. Will the Chancellor move to mandatory reporting in the 2021-22 reporting year?
We welcome the introduction of green gilts. The Treasury Committee has been looking at them, and 16 other countries have done this, including Germany and Sweden. Can the Chancellor tell us how this will impact on Scotland? What discussions has he had with the Scottish Government on this? How will he ensure that Scotland gets its fair share of any investment to come? Will the UK Government take this opportunity of new financial powers to back the transition to a low-carbon future, to accelerate their net zero targets and to match the Scottish Government’s ambitious commitments?
Lastly, the Government must put their own house in order on green issues. The Treasury has a good opportunity to work across different Departments, such as UK Export Finance, to ensure that they are all making their contribution to a greener future. The Chancellor must take this seriously right across the Departments if he is going to come to COP26 in Glasgow next year with anything worth the candle.
Financial services are worth over £130 billion to the UK economy and support over 1 million jobs, two thirds of which are outside London, so I wholeheartedly welcome this statement. I also welcome the announcement on the sovereign green bonds. Can the Chancellor confirm that those bonds will fund crucial projects to tackle climate change, such as the restoration of the moorlands in the Peak district and vital infrastructure investment to improve public transport across the north of England?
My hon. Friend is absolutely right. The transition to net zero will require enormous sums of capital to help finance it. Along with all the other market developments that it will catalyse, this bond will ensure that we can attract that capital into the UK to build the infrastructure we need.
Can I warmly welcome the announcement of a sovereign green bond, and may I congratulate my hon. Friend the Member for Grantham and Stamford (Gareth Davies) on his tireless campaigning on this issue? Can my right hon. Friend say whether he agrees with me that these green gilts will help tackle climate change and create green jobs in firms of all sizes, including the many micro-businesses in my constituency of Aylesbury?
I think my hon. Friend is absolutely right. The transition to net zero will create enormous economic opportunity for companies large and small, and I know that he will champion his small businesses as they seek to benefit from it and help not just drive our recovery, but create jobs in his local area.
The Chancellor mentioned that jobs are leaving London for the rest of the UK. I would point out that jobs are leaving the UK for Europe and assets are leaving at a frightening rate—£1.2 trillion. The announcement about the green gilts is welcome, but again it is too late. We had a Green Investment Bank in this country, and at that point we could claim to be ahead in the fight on climate change. So does the Chancellor appreciate why constituents such as mine in Edinburgh West, the second largest financial sector base in this country, are concerned that this Government simply are not on top of what is happening and up to date with what this country’s economy needs?
We do not see very much of the Chancellor of the Exchequer in this place. I wonder what it could possibly be about the Monday after the electoral routing of populism in the USA over the weekend that makes him want to come to the Dispatch Box and speak about climate change. Never mind the good management of his reputation, his Government cannot escape the consequences of Brexit and the lack of the deal that was promised for financial services. Given the shape of the UK’s economy, the consequences will be far worse for those workers that we keep talking about who are in financial services outside London and in other regions. Will he confirm what he believes will be the relative regional impact of the current state of the Brexit negotiations? What is his policy to stop Brexit making regional inequality even worse?
I thank my right hon. Friend for updating the House with his statement, and for the plethora of statements that he has offered to the House. I also remind Opposition Members that this is not a UK crisis; this is a world crisis, it is a pandemic. I thank my right hon. Friend for everything that he has done to help those in the financial sector and the green economy. Many people in Beaconsfield work in both those sectors. Will he outline to the House how green finance can be used to build back the UK economy post-coronavirus, as well as meeting our climate change commitments and delivering a greener economy?
I congratulate my right hon. Friend on becoming the climate change Chancellor. Does he agree that private sector businesses and investors are fundamental to achieving our target of net zero? Only they have the capacity to innovate, to make changes in the supply chain and to generate the prosperity that will make the choices we make as consumers and citizens much easier to accomplish.
As the shadow Chancellor pointed out in her excellent remarks, the United Kingdom, under successive Tory Governments over the past decade, has pumped £6 billion into climate-damaging fossil fuel projects overseas via UK Export Finance. Will the Chancellor now commit to ban this activity immediately and make it a priority to invest in British green energy industries in places such as the Humber estuary and to create the future jobs we need for a real green northern powerhouse?
The announcement of a sovereign green bond is to be welcomed as an important step forward in the financing of infrastructure and industry, and is essential to achieving net zero, but what sort of access will the Welsh Government have to this important source of green finance to ensure that projects and priorities that fall within its remit are adequately supported, given that the Chancellor seems to have ruled out empowering the Welsh Government to issue their own green bond?
I warmly welcome the statement today, particularly on the issuance of green gilts, which is a great idea. Does my right hon. Friend agree with me that the issuance of a green gilt marks a great opportunity to showcase Britain’s place in the world in terms of our financial services power to move towards net zero by 2050?
Regarding the comment made by the hon. Member for Wirral South (Alison McGovern), I do not know where Labour MPs have been these past few weeks, but the Chancellor has been here today, 9 November, and on 5 November, on 22 October, on 20 October, on 14 October, on 24 September and on 15 September. No Chancellor has been more responsive to the needs of Members of Parliament than this Chancellor, which is why I welcome his statement today. It demonstrates that neither the financial services sector nor he as UK Chancellor are going to sit around and wait for the EU to respond, but that he will point the way forward in leadership in green finance, in financial technology and in financial transparency. Will my right hon. Friend build on the green sovereign bond announced today, so that ahead of COP26 retail investments will be available for retail investors?
Full debate: Future of Financial Services
My hon. Friend makes a hugely important point. It is not just the number of jobs that are lost, but the duration of time that people are out of those jobs that is critical in mitigating the economic scarring that results from this pandemic. That is why my right hon. Friend the Chancellor set out in his winter plan the plan for jobs, which included £2 billion of funding for the kickstart scheme. I was speaking to the Secretary of State for Work and Pensions this morning and I was very pleased to hear about the progress that has already been made on the kickstart scheme, which is up and running and providing support to 16 to 24-year-olds across our constituencies. It is part of the wider package of support on training—the tripling of traineeships, the £2,000 for apprenticeships, the £2 billion on kickstart—and as we accelerate our infrastructure and bring back the green jobs, such as through the decarbonisation of public buildings, that will also offer new opportunities for training as we deliver that record infrastructure investment.
I am slightly surprised to have a question from a former Chief Secretary that does not recognise the infrastructure investment that the Prime Minister set out in the summer and that my right hon. Friend the Chancellor updated the House on through his summer economic update, including the £2 billion going into green jobs and public sector decarbonisation, and the massive investment in High Speed 2, in road investment strategy 2, and in control period 6 through the various rail schemes that the Government have committed to. We are accelerating the delivery of that infrastructure through Project Speed.
Full debate: Lockdown: Economic Support
My hon. Friend raises a good point, and it speaks to the point raised on youth unemployment a moment ago. We have invested £2 billion in the kickstart scheme. We are tripling traineeships. We have the £2,000 for firms taking on apprenticeships. That is something that the Secretary of State for Work and Pensions is particularly focused on, as well as the doubling of work coaches. Linked to that is our investment in green jobs through net zero and the package that was announced by the Chancellor, including the decarbonisation of public buildings and homes and the creation of green jobs. We are bringing forward the £5 billion infrastructure package that the Prime Minister announced the week before the summer economic update. We then need to link those jobs to skills through schemes such as the kickstart, so that for those who are not able to retain their jobs, we are able to get them into the new jobs of the future.
My hon. Friend is quite right: this is about not only working together to retain as many jobs as possible, but looking to the jobs of the future. He has constructive views on how we use levelling up in terms of the future jobs that can be offered in Stoke. We need to combine that with our commitments on infrastructure, broadband, research and development investment, and net zero, then look at those future jobs and the skills training that is offered to his constituents in Stoke, so that those who move from their current jobs can quickly get into those jobs of the future.
Full debate: Public Health Restrictions: Government Economic Support
In terms of ensuring that we are winners in the green industrial revolution, I point the hon. Lady to measures that we have already announced in the Budget to provide significant support for initiatives such as carbon capture and storage and the construction of a charging infrastructure fund, to build more charging points across the United Kingdom. Such measures will make an enormous difference, on top of our commitment to double our research and development spending over the next few years, ensuring that businesses across the UK can play a leading role in driving our progress towards meeting our climate targets and creating new jobs in the process.
Full debate: The Economy
We must be ambitious for the future of our country’s economy. Our ambition should not be just to build our way out of this but to do so in a greener and cleaner way. For this, we need more than the reheated announcements by the Prime Minister last week. Of course the investment announced was welcome, not least because much of it was already committed to by the Government. However, core elements are missing. For example, £50 million to support retrofitting in social homes is just a seventh of what the Conservatives said they would be spending every year. The muddled confusions over stamp duty over the past 48 hours reflect a broader lack of strategy when it comes to house building, particularly for genuinely affordable and social homes. Overall, the UK’s green investment package barely touches the sides of other countries’ commitments. Even with what was announced today, it only equates to just over the value of Germany’s investment in one green technology alone—hydrogen. The Committee on Climate Change has indicated how far behind the UK is in the race to decarbonise. Failure to heed its recommendations is not only damaging to our planet, but it also cuts us out of leading the development of the key technologies of the future. The Conservatives are still refusing to impose conditions on investment to ensure that it contributes to the goal of net zero and that it supports local jobs, uses local firms, leads to sustainable skilled employment in local areas and prevents the use of tax havens and other forms of asset stripping.
The hon. Lady talked about conditionality on funds that we provided. Here, she has to choose. It cannot be that you can develop significant interventions to provide liquidity and cash support to businesses at scale and speed, while at the same time having an incredibly targeted approach, imposing conditions on individual businesses. You have to choose one or the other. We unashamedly chose the former. The speed of what was happening to our economy and the scale of what was happening required us to take a broad-brush approach, and that was the way we could get help to as many people as possible as quickly as possible. But when individual businesses come to the taxpayer and require bespoke support, it is right that we impose conditions on those businesses. I have been very clear that that is what I would do and, indeed, that is what we have done. Without going into the details, as that would be inappropriate, let me say that such interventions will come with conditions: conditions on executive pay, protecting employment, climate change obligations, how supply chains and small businesses are treated, and obligations around tax. Those are all commitments and conditions that the taxpayer would expect us to make and that is what we have done in the one instance where the support has been provided thus far. It is what we will do for any future support.
The hon. Lady talked about a green recovery. This Government are proud of their record on our environment. She talked about Germany and other countries. When I stood here in March, we outlined one of the most ambitious and far-reaching investment programmes for our environment and tackling net zero from any Government this country has ever seen. Carbon capture and storage, the nature for climate fund, investing to further the support for electric vehicles, new charging stations, tackling air quality, taxes on polluters—those are all measures we have already taken. I am glad that other countries are catching up. We have decarbonised faster than almost every other European country. It is a record that those of us on the Government Benches are proud of.
The measures we have announced today are some of the most far-reaching measures any country has taken to tackle energy efficiency. They will provide thousands of pounds of grants for homeowners up and down the country to create local jobs and ensure we can reduce carbon emissions from our housing stock, which today account for almost a fifth of all our emissions. The Committee on Climate Change has said we must address that. In our manifesto, we committed ourselves to addressing it. Rather than waiting to get started and rather than the five-year plan outlined in our manifesto, we are getting on with it today.
I thank the Chancellor for the positive measures that he has announced, but why was there absolutely nothing serious for the self-employed? With unemployment rocketing—perhaps up to 3 million—and the climate emergency already hitting us, why is the Chancellor’s ambition for a green recovery so small? Surely we need far more green jobs, now and in future. Why is he not being as radical as European countries such as Germany and France, with a massive green fiscal stimulus for the technologies and industries of the future? Surely even his own home insulation plan should be three times as big and last five years to get real investment in our homes, to decarbonise, and to get the green jobs for our young people and for every community throughout our country.
I assure the hon. Lady that all relevant impact assessments are conducted at the time that they are required by legislation. As for the environmental impact, I gave a flavour of it earlier. The sum total of the green homes grant scheme and public sector decarbonisation fund will mean that about half a megatonne of carbon will be saved every year, which is the equivalent of about 270,000 cars taken off the road, and there will be about 140,000 new jobs. I hope she will welcome that.
The Chancellor says he is proud of the Government’s green record, yet the green measures announced today will cut just 0.14% of UK emissions—not only that, but this is a Government who are still committed to spending £27 billion on new roads. If he wants to have a green record that he can genuinely be proud of, will he start by cancelling the roads scheme, put the money into public transport and broadband, and introduce a new rule for the UK economy to ensure that all spending and taxation are in line with the Paris agreement and restoring our natural world?
It is a record to be proud of. We have cut carbon emissions by 40% in the last few years. We are now a world leader in offshore, wind, and, for the first time ever last year, we generated the majority of our energy from zero carbon sources. We are building on our progress. That has happened under a Conservative Government, and whether it is through our nature for climate fund, our measures to tackle air quality, or new technologies such as direct air capture or carbon capture and storage, this Government will ensure that we meet our net zero obligations and do so in a way that creates jobs in every part of our United Kingdom.
My right hon. Friend is doing a fantastic job in promoting and protecting jobs, but to really trade our way out of this recession, we will need to look at the future, and I know he is keen as I am to see a green recovery. Does he agree that COP26 next year offers us a really good opportunity to show UK global leadership, including by working now with international partners in big projects in areas such as battery storage, offshore wind or carbon capture, usage and storage? Those areas can create green jobs for the future the Chancellor.
My hon. Friend is absolutely right. That is something the Committee on Climate Change also mentioned, which is why in the Budget we doubled the investment that we put into flood defences. That was the right thing to do. It will build resilience in our communities and protect our natural environment. I do not know the specifics of the timing of the announcement that he alludes to, but I am happy to go away and take a look at it. I know how important it is to him and his constituents that we are able to protect them from the devastating flooding that we have seen in recent years.
My colleagues have mentioned the lack of sector-specific support in this statement. May I ask particularly about car manufacturing? France has announced increases in electric vehicle subsidies, making them the most generous in Europe, and a means-tested scrappage scheme. Germany has doubled its EV subsidies. What will the Chancellor do not only to get car manufacturing back on its feet, but to help us meet our climate objective and the Committee on Climate Change recommendation that we bring forward the ban on new diesel and petrol vehicle sales to 2032—the committee recommends a zero-emission vehicle mandate? I hear nothing from him about what he will do to support manufacturing and our climate objectives.
In the Budget, we announced about £1 billion in support for low-emission vehicles in various different ways, including a £400-million charging infrastructure fund to spread the development of charge points across the country. I think that underlines our commitment to ensure that we transition properly to our net zero environment, starting with our transportation industry.
Full debate: Economic Update
The pandemic has further highlighted the deep connection between human health and thriving ecosystems, with the destruction of nature both increasing pandemic risk and driving climate change. First, given the news of record job losses, will the Minister prioritise the job creation potential of nature restoration at a national level and agree that not one single shovel-ready project will end up indiscriminately destroying nature? Secondly, will his Department establish a new taskforce on jobs for nature, to maximise the number of people employed in protecting the natural world, rather than destroying it? He says the Treasury will recalibrate whether there is more to be done on the green economy; I assure him that there is, and he just needs to get on and do it.
Full debate: Economic Outlook and Furlough Scheme Changes
Finally, of course, we will need to deal with the considerable burden created by the costs necessarily incurred in fighting coronavirus. Subsequent Finance Bills will need to be very different from this one, and I want to use the time I have available to spell out why. We will need new approaches to taxation generally, the social contract with business, funding public services, the climate crisis and tax reliefs. I will deal with each area briefly in turn.
An additional area where action is needed is tackling the climate crisis. Survey evidence, albeit tentative at this stage, suggests a renewed appetite from the public to grasp the challenges posed by the need to decarbonise. The Bill makes small moves in the right direction. It incrementally increases vehicle excise duty, using emissions as a benchmark—the Chief Secretary to the Treasury mentioned that—and it introduces the world- wide harmonised light-duty vehicles test procedure, a UN-established vehicle testing procedure, in an attempt to prevent the gaming of emissions standards by vehicle manufacturers. We encourage the Government to adopt a steady replacement of all testing procedures within that framework. More broadly, we need a far stronger shift in taxation to disincentivise carbon production. The previous Finance Bill continued implicitly to support fossil fuels in a number of areas, and this one only sets the scene for some elements of the promised new plastics tax and the new emissions controls that will be necessary. Given that we have declared a national climate emergency in this very House, we need far stronger action in subsequent Finance Bills.
Full debate: Finance Bill
The debate has been about whether we need a targeted change in relation to repairs to listed properties. On a bit of a tangent, there was a little discussion about VAT on the installation of energy-saving technologies. I agree with the comments of the hon. Member for Glasgow Central (Alison Thewliss) in that regard—she was spot on. The comments by the hon. Member for Bath (Wera Hobhouse) about the listing system in Bath and what it has achieved were very interesting, but I question whether a high cost for introducing energy efficiency and renewable energy is unique to the listed sector.
Full debate: VAT (Listed Properties)
I rise to speak today because the House declared a climate emergency on 1 May. If anything, that emergency has become ever more evident over recent days. While we have been in this House, outside in our country the temperatures reached a record-breaking 39°. I pay tribute to all those emergency services who have been helping people to deal with the heatwave. They have been active in Paris as well, which has just itself reached a new record of 41°. In the Netherlands and Belgium, national records for temperature have already been broken this year.
I have talked to lots of children and young people in my constituency about the climate crisis. In fact, many of them have come to speak to me during mass lobbies on the topic in this place. I know how concerned many of them are about the crisis; in fact, many of them at local schools have been producing posters with their views about the environmental crisis. I find it heartbreaking to see their images of the climate breakdown—of what they think it will be like if we do not act—but I am inspired by their passion and determination to do something about it.
When we return to Parliament, I hope it will not be to the chaos of an impending no-deal Brexit, but even more fundamentally it must not be a return to business as usual. When we come back at the beginning of September, it must be to a legislative programme that meets the aspirations of those children and young people and their parents, that faces up to the climate crisis, and that actually embodies the meaning of the term “emergency”: a situation that demands an immediate response.
Full debate: Summer Adjournment
My city of Oxford has not just declared a climate emergency, but is putting in place the UK’s first ever zero emissions zone and is also convening right now a citizens’ assembly to discuss measures to deal with that climate emergency. If we decide collectively in this House that we have a climate emergency, we must act on it, and we need to do so above all in three areas.
Full debate: Environment and Climate Change
Labour is such a strong supporter of the OBR that we agree with the hon. Member for Ochil and South Perthshire about an extended remit. The OBR has helpfully raised the salience of long-term challenges for the UK’s public finances due to demographic change—something the hon. Member for Henley (John Howell) usefully mentioned—but Labour Members feel that it could have a more expansive role when it comes to a long-term threat that is not sufficiently considered by the Government, that of climate change and environmental degradation, to which many experts, not least Lord Stern, have drawn attention. We ask the OBR to report in particular on the fiscal risks of climate change, which could include the impact of raised food costs, the costs of flooding, and lost productivity caused by extreme weather events.
Adding more of a focus on environmental matters to the OBR’s remit would go with the grain of what the Bank of England has been doing by incorporating a consideration of banks’ exposure to climate change-related risks and stranded assets as it regulates banks. It would echo the approach of many long-term investors who are increasingly considering environmental matters when it comes to assessing the promise of different investment opportunities. The OBR would probably be willing and happy to do something that would usefully build on its existing activity.
Full debate: Office for Budget Responsibility
Our final concern is about APD’s impact, or otherwise, on environmental outcomes. In response to a question posed by the hon. Member for Henley, the hon. Member for Belfast East maintained that APD does not have a positive environmental impact. However, we must look at it in the context of enormous public concern around climate change and the increasing significance of emissions from aviation. At APD’s introduction in 1994 and, following that, the Labour Government’s focus on it, there was an attempt to ensure that its design would have a green impact. For example, during the 2007 Budget process it was stated that APD
“plays a valuable role in ensuring that passengers understand and acknowledge the environmental costs of their actions. The resultant behaviour change can deliver significant climate change benefits”.
I hope that the hon. Lady does not misconstrue what I said as a suggestion that we are not interested in climate change. The Library briefing is helpful, talking about the Labour Government in 2006 and a Department for Transport recalibration of emissions, which were to increase and not decrease until 2030. I do not think consumers realise that the contribution is made for environmental benefit or that it is having any tangible impact. The growth of aviation technology will have a much bigger impact on environmental benefits than an APD charge.
Full debate: Air Passenger Duty
Amendment 12 focuses on an issue that I raised in Committee: the fact that taxi drivers with a zero-emission capable vehicle will not be exempt from vehicle excise duty until next year. As we discussed in Committee—I am sure that the Minister remembers this—taxi drivers need to purchase their car over a long period due to its relatively high cost. In many areas of the country, taxi drivers are shifting to lower or zero-emission capable taxis. I asked the Minister whether further changes were needed to the Bill so that the take-up of zero-emission capable taxis would not be choked off. I was grateful to the Minister for stating that there would be a consultation on the new measures in the spring, but I do not know whether that consultation has yet begun, so perhaps the Minister will enlighten us on that point. In the meantime, it seems sensible, as my hon. Friend the Member for Ilford North proposes, to prevent taxi drivers from taking a hit when they have taken an environmentally friendly choice, which has considerable financial consequences for them because the vehicles are more expensive than standard taxis.
Full debate: Finance (No. 2) Bill
Amendments 10, 11 and 12 stand in my name and those of a number of Members on both sides of the House. They deal with the vehicle excise duty supplement, and, in particular, with how it applies to the new electric zero-emission taxis. I should probably declare an interest, as chair of the all-party parliamentary group on taxis. I am delighted that the amendment carries not only cross-party support but support throughout the country: in inner and outer London, Brighton, Sheffield, Bradford, Exeter, Huddersfield, Cambridge, Stoke-on-Trent, Bedford, Cardiff, Chesterfield, Sunderland, Leeds and Rotherham. Sterling work has also been done by my hon. Friend the Member for Oxford East (Anneliese Dodds), not just in Committee but in presenting the same powerful case this afternoon. I hope that this is an issue on which we can find common cause with those on the Treasury Bench.
During the debate on the Budget and subsequently the Finance Bill, I welcomed the Chancellor’s announcement in the Budget to exempt zero emission-capable taxis from the vehicle excise duty supplement, but I also cautioned that that exemption would not kick in until mid-2019. Zero emission-capable taxis are already available for sale and have already hit the streets of this city and others. This new generation of the iconic black taxi not only provides passengers with a new degree of comfort and great surroundings, including the ability to see the sights of London through the roof while driving around but, most significantly and pertinently for the purposes of this debate, it is environmentally friendly. Members on both sides of the House are increasingly aware of how difficult taxi drivers in this city and across the country are finding their trade in the face of aggressive, and in many cases unfair, competitive practices. The Government need to do all they can to stop that great iconic taxi being driven off the streets of this city and others.
Full debate: Finance (No. 2) Bill